Olwyn Enright (Laois-Offaly, Fine Gael)

At the launch of the MABS protocol on 3 June, the Minister was critical of the fact that the sub-prime lending companies had not signed up to it. Her Department finances the operation of MABS and the lenders come under its auspices in that sense. Did the Minister not believe, prior to criticising the sum-prime lenders, that it would have been better to have them involved or to ask MABS to get them involved? The main group with a high rate of personal borrowing and other financial difficulties comprises those in the sub-prime area. The highest rate of interest being paid is being paid by those in this category. Therefore, having the sub-prime lenders involved is of the utmost importance.

Research that the IBF presented to the Joint Committee on Social and Family Affairs yesterday shows only 40% of borrowers find debt management easy, which means 60% do not. Most of these can manage if they are careful but 15% of the 60% have cause for concern or a real problem. This problem will grow. What discussions has the Minister had with the sub-prime institutions and will she ensure that they sign up to the protocol? While they got an easy buy-out by virtue of the fact that they are not regulated, they are licensed and need to be very involved with the protocol.

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